Retail turnover rises, food leading

Retail turnover rises, food leading

Australian retail turnover rose 0.3 per cent in June 2017 in seasonally adjusted terms, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures, following a rise of 0.6 per cent in May 2017.

“In seasonally adjusted terms in June 2017, we saw rises in Household goods retailing (0.9 per cent), Cafes, restaurants and takeaway food services (0.5 per cent), Clothing footwear and personal accessory retailing (0.8 per cent) and Other retailing (0.2 per cent),” said Ben James, director of quarterly economy-wide surveys. “There was a fall in Department stores (-0.3 per cent), while Food retailing (0.0 per cent) was relatively unchanged.”

In seasonally adjusted terms there were rises in New South Wales (0.5 per cent), Queensland (0.7 per cent), South Australia (0.3 per cent), Tasmania (0.6 per cent), the Northern Territory (1.2 per cent) and Western Australia (0.1 per cent). There were falls in Victoria (-0.3 per cent) and the Australian Capital Territory (-0.1 per cent).

The trend estimate for Australian retail turnover rose 0.4 per cent in June 2017 following a 0.4 per cent rise in May 2017. Compared to June 2016, the trend estimate rose 3.6 per cent.

Online retail turnover contributed 4.1 per cent to total retail turnover in original terms.

In seasonally adjusted volume terms, turnover rose 1.5 per cent in the June quarter 2017, following a rise of 0.2 per cent in the March quarter 2017. The largest contributor to the rise was Household goods retailing, which rose 2.5 per cent in seasonally adjusted volume terms in the June quarter 2017.

More detailed industry analysis and further information on the statistical methodology is available in Retail Trade, Australia (cat no. 8501.0).

Retailers are happy

Australian Retailers Association (ARA) executive director Russell Zimmerman said the June retail trade figures remain positive due to the continual growth in Food retailing.

“Although we see a robust 3.8% year-on-year growth overall, the main driving force of this increase stems from Supermarkets and grocery stores with a sturdy 4% growth year-on-year,” Mr Zimmerman said.

“As Food Retailing represents 40% of overall retail trade, this continual surge in Food Retailing reflects somewhat positively on the overall industry.”

The Household Goods category saw the strongest year-on-year increase with an overall 5.88% increase, this included a substantial growth in Furniture sales which received a 10.54% year-on-year increase.

“We usually see home owners increase their spending on household goods when housing values rise, and this month’s retail trade figures reflect the high consumer confidence home owners felt in June,” Mr Zimmerman said.

“Hardware figures also proved positive with a 3.73% year-on-year increase, their strongest retail trade figures since December since the closure of Masters around the country.”

Clothing Footwear and Personal Accessories figures dropped significantly in June with a 1.71% year-on-year increase, compared to the 3.76% year-on-year increase the category received in May.

“This substantial drop shows a very volatile retail market as the last few months sales have been driven by the weather and significant discounting,” Mr Zimmerman said.

“With Amazon recently purchasing land in Victoria, we know the retail market is changing and those retailers who redefine their businesses to adapt to the shifting environment will thrive in the dynamic retail landscape.”

 

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